In this day and age, it's almost impossible to fully avoid any kind of debt.  This reality is especially relevant for those of us with children to look after.   

It seems as though the cost of everything is constantly on the rise, and sadly this isn't far from the truth.

The easiest debt to accumulate is of course credit card debt. You have two or three cards in you wallet (at least!), and when you're worried about cash you pull one of them out. For some reason, using this plastic card doesn't really make you feel as if you've spent any money. But you certainly have!

Statistics show that the average family in the US these days is carrying a debt of around $7,500 on their credit cards.  Personal bankruptcies are on the rise, reaching a record in the years 2002-2003, for the most bankruptcies a year for the last 30 years.  So at least you know you're not alone, whether this consoles you or not.

The Tips

Here are a few tips on how to minimize the risk of credit card debts and how to get rid of the debts you already have. Even if you have already given up hope, there are ways to minimize the damage.

The first thing is to stop worrying yourself and start to take action. Any debt you have will not miraculously disappear, so start planning how you will make it disappear yourself without any help from the supernatural. Some times it may seem almost impossible to get out of debt, but once you start you are on your way to relief. Deciding that you can't deal with the situation right now will only make it more difficult in the future. And in most cases, you will have to deal with your debts eventually.

Cash gives you a more tangible idea of how much you are spending, so try and pay with cash instead of credit. Paying with cash or your bank card reminds you of your own financial limitations; it forces you to live by what you actually have. It will be more difficult for you to spend, but that is the general idea.

Use only one credit card! It is enough that you forget you are actually spending money by using one credit card, but anyone who uses 3 or 4 credit cards couldn't possibly keep track of the money spent. Do yourself a favor and focus on one credit card only, the one that gives you the best terms.

As in any other matter, the more you know – the better the deal you can get!  Different companies offer different rates and terms to their clients, make sure that your credit card company is giving you the best service available: 

• Call up other companies and ask for info on the terms they give.  But make sure not to fall for the 0% introductory rates which turn into a 28% rate the minute you turn your back.

• If a company offers you a low rate, make sure their annual fees aren't high.  Credit companies who offer low interest rates may compensate themselves with high annual fees, so make sure the total cost still constitutes a good deal for you.

• Make sure you are aware of how much you spend and exactly how much this expenditure is costing you in interest rate.  Sometimes understanding the cost of debt can be a good motivation to get rid of it, if channeled to constructive decisions.

Although credit card companies charge an outrageous sum for missing payment deadline, over 5% of the population still misses the payment. You should avoid missing payments as much as best you can, each delay costs $25-$30, and its just money down the drain.

Don't let yourself be dragged down by debt! Reducing the stress level about your family's economical situation is one of the best things you can do for your own piece of mind as well as your child's upbringing in a happy environment.